Vital bus services face a wave of crippling cuts - while millions of pounds earmarked for transport schemes is handed back to George Osborne.

Transport officials are returning more than £100m in savings to the Chancellor as part of the Government’s “fiscal consolidation” programme despite the looming cutbacks.

Campaigners believe the much-needed cash should be spent on maintaining under-threat bus services, mending pothole-filled roads and other transport projects.

The move comes as cash strapped councils are forced to trim their transport budgets to cope with falling Government subsidies, threatening hundreds of bus services.

North Yorkshire is cutting its bus budget by £2m while Worcestershire is planning to slash services by £3m. Cumbria, Nottinghamshire, Dorset and Herefordshire are making similar savings while Lancashire is set to cut £3.8m from bus services over the next two years.

Bumpy ride: Campaigners want the cash to be spent on repairing roads

Town hall budgets for buses have already been slashed by £17.5m over the past year, with another £48m of cuts announced for future years, says the Campaign for Better Transport.

CBT public transport campaigner Martin Abrams said: “This huge underspend by the Department for Transport should be immediately set aside for repairing our storm damaged roads and funding vital local bus services.

“This year looks set to be a terrible 12 months for buses as cuts to local authority budgets really start to bite.

“There is real public anger about the large number of bus services under threat, leaving many thousands without vital transport links.

“We need immediate action from the Government and this money could provide a timely reprieve for many bus services while also repairing many of the potholes caused by the recent storms.”

A Department of Transport spokesman said: “No decisions have been made on the remaining underspend for the current financial year.

“This Government has committed to the biggest ever investment in our road network, worth £50bn over the next five year.”